The opportunity cost of money that a firm's owner has invested in the firm is an example of

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The opportunity cost of money invested by the firm's owner is an example of implicit costs, which are the opportunity costs of using the owner's resources in the business rather than using them in the next best alternative. These costs do not appear in the firm's accounting statements. Direct production costs (A) and explicit costs (E) are costs that are easily measurable and actually appear in a firm's accounting statements. Sunk costs (C) are costs that have already been incurred and cannot be recovered. Accounting costs (B) refer to actual expenses incurred and reported in a firm's financial statements.

The Opportunity Cost of Money That a Firm's Owner Has